Removing a container ship blocking the Suez Canal, one Salvage officials stated it could take weeks to resolve the canal’s congestion, the main route for European imports of LNG from the Middle East, and some cargoes traveling to Asia from the Mediterranean.
Qatar, a major producer, exported close to 260 LNG cargoes to Europe in 2020 via the canal, Rystad stated.
Carlos Torres Diaz, Rystad’s head of gas and power markets, stated that even if the route is released within one week, there is a massive queue of cargoes lining up to cross the canal. The return to regular flow will demand some time.
There were three cargoes for early April delivery expecting on Wednesday to pass to the Mediterranean. At most limited, two others were in the Arabian Sea and directed to the Suez Canal.
LNG tanker Golar Tundra was stored at Egypt’s Idku on March 21 and was en route to Asia, Wood Mackenzie analyst Lucas Schmitt stated.
At the Southern entrance, the tanker Rasheeda was setting for cargo from Qatar.
Deliveries of LNG to Spain’s seven regasification terminals have not yet been obstructed, a spokesman for system operator Enagas stated.
No LNG ship bound for Spain has been influenced by the ship stuck in the Suez Canal, and there are no ships listed to come from countries that practice this route in the next two weeks.
Throughout winter in the northern hemisphere, when heating demand increases, congestion at the Panama Canal bettered send spot LNG prices in Asia to record levels as shippers were required to seek more protracted, more expensive routes.
The spring season and the pipeline network can serve to contain a swell in prices this time.
Charter rates are low – about $30,000 per day – but could increase if the disruption lasts, Schmitt stated.
Shippers may have to convert course and travel encompassing the Cape of Good Hope or pause in the Red Sea and the Mediterranean for the beached tanker Ever Given to be refloated, consultancy Kpler stated on Wednesday.
The trip from Suez to northwest Europe takes about nine days at average speeds, Rystad stated. Qatar’s trip to northwest Europe demands almost 17 days, but rerouting around the Cape of Good Hope would require more than 30 days, the firm announced.
Torres Diaz said it could be an excellent chance for U.S. producers to acquire some orders at a time of such a transport route crisis. The world’s most active trade routes may restrict delivery to Europe of about 1 million tonnes of liquefied natural gas (LNG) on ten vessels if the blockage lasts for two weeks, researcher Rystad Energy stated.